NYC Real Estate - August 2022
Nishant Sondhi
Real Estate Investment Fund Manager | Specialized in Passive Investing for Multifamily & New Developments | Data-Savvy, Transparent, Committed
Greetings, and I hope you are doing well.
?Manhattan Overview:?The Manhattan market is stabilizing, which is good news.
We have enough data collected to safely say that we are normalizing after three months of?sharply declining deal volume. In other words, we are no longer actively falling, and it looks like?we are resettling at this new, lower activity level.
?Price Action
An early look at Q3??action shows?prices?down by 5-8% from last?quarter. While they are?up against 3Q21, the?coming quarters will be?harder to beat and?could present negative?headline risks - UrbanDigs
Leverage
?Understanding the real-time balance of supply and demand is the best way to understand the current state of leverage, whether it belongs to buyers or sellers.
?One of the most effective ways to track this is via?Market Pulse?(ratio of contracts signed to active listings). This peaked in early 2022, signaling a strong seller's market, and began falling.?
?Recently, however, this measure appears to have broken its downtrend with a slight bounce as supply is fading faster than deal volume.?
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My Views
Sellers →?
The market has shifted from Q1/early Q2 of 2022. While the market may have stabilized, there has been a reduction in deal volume this summer. Therefore, for sellers planning to list, it will be better to look at properties that are active in the market and have recently got in contract rather than past sales about 6 months ago. Also, for sellers who have been in the market?for a while now, considering a price reduction will be a good idea as September and October represent 2 months in which we traditionally see high buyer activity.
Buyers →?Buyers need to note that NYC did not see parabolic price rises over the last three years, unlike other markets across the country.?It is a good time for buyers to be active in the market because the market is not actively falling, prices are softer, and sellers are more open to negotiating. The important element here is that buyers should participate in this market, as in September, we see a surge of new listings hit the market, and buyers will have a good number of options to choose from.
Have questions about NYC market forecasts, trends, or anything else real estate-related? I'd love to connect - reply to this email to schedule an appointment.
Data Source: UrbanDigs
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Nishant Sondhi:?Nishant is a Real Estate salesperson in Manhattan and Brooklyn and the Founder of the Sondhi Team, and his team specialises in Residential Real Estate. He is passionate about helping buyers and sellers navigate the New York market, save them thousands of dollars, time and make the process enjoyable. His strong analytical, marketing, and negotiation skills developed during his MBA and over 10 years of sales experience give him a unique edge to best serve his clients.